Castor Maritime secures $50 million loan, redeems preferred shares

Castor Maritime Inc. (NASDAQ: CTRM) announced it secured a $50 million sustainability-linked senior term loan facility with a European bank, according to a company statement.

The five-year facility will be secured by first priority mortgages on four of the company's dry bulk vessels and guaranteed by Castor Maritime. The loan bears interest at Term SOFR plus a margin that may adjust based on the company's performance against sustainability targets. Net proceeds will be used for general corporate purposes.

The shipping company also completed the full redemption of 60,000 shares of its 8.75% Series E Cumulative Perpetual Convertible Preferred Shares on October 13. Castor Maritime agreed with Toro Corp. to redeem the shares for cash consideration equal to their stated amount plus 0.523%, including accrued distributions.

Toro Corp., listed on the Nasdaq Capital Market, shares leadership with Castor Maritime. The same individual serves as Chairman and Chief Executive Officer of both companies, and also holds the Chief Financial Officer role at Castor Maritime.

Both companies' boards approved the preferred share redemption following recommendations from their respective special committees of independent directors who negotiated the transaction terms. The redeemed shares will be cancelled and no longer remain outstanding.

Castor Maritime operates a fleet of nine vessels with 0.6 million deadweight tons of capacity. The company also holds a majority stake in Frankfurt-listed asset manager MPC Münchmeyer Petersen Capital AG.

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